(MRK) Merck - NYSE
Sector: Healthcare | Industry: Drug Manufacturers - General | Exchange: NYSE (USA) | Market Cap: 298.256m USD | Total Return: 18.1% in 12m
Avg Turnover: 1.25B
EPS Trend: 71.0%
Qual. Beats: 1
Rev. Trend: 95.1%
Qual. Beats: 1
Warnings
Below Avwap Earnings
Tailwinds
No distinct edge detected
Merck & Co., Inc. is a global healthcare company specializing in human health pharmaceuticals and animal health products. Its human health segment focuses on oncology, vaccines, and hospital acute care, led by the blockbuster immunotherapy Keytruda. The company operates within the research-based pharmaceutical sector, characterized by high capital expenditures in R&D and a reliance on patent protection to maintain market exclusivity.
The company also maintains a significant veterinary division, providing vaccines and health management solutions for both livestock and companion animals. Merck’s business model emphasizes strategic collaborations and licensing agreements with peers like AstraZeneca, Moderna, and Eisai to co-develop novel therapies, including antibody-drug conjugates and bispecific antibodies. For a deeper look into these partnerships and financial metrics, you may find further insights on ValueRay.
Founded in 1891 and headquartered in Rahway, New Jersey, the firm utilizes an integrated pipeline to address diverse therapeutic areas such as cardiovascular diseases, immunology, and infectious diseases. This diversified approach across human and animal health helps mitigate the risks associated with individual drug patent expirations.
- Keytruda revenue growth remains the primary driver of total pharmaceutical sales
- Loss of exclusivity for Keytruda in 2028 creates long-term patent cliff risk
- Expansion of oncology pipeline through antibody-drug conjugate partnerships diversifies revenue streams
- Animal health division provides steady cash flow to offset drug development costs
- Recent FDA approval of Winrevair accelerates growth in the cardiovascular therapeutic segment
| Net Income: 8.94b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA -3.83 > 1.0 |
| NWC/Revenue: 12.30% < 20% (prev 16.14%; Δ -3.83% < -1%) |
| CFO/TA 0.14 > 3% & CFO 17.9b > Net Income 8.94b |
| Net Debt (43.4b) to EBITDA (24.3b): 1.78 < 3 |
| Current Ratio: 1.30 > 1.5 & < 3 |
| Outstanding Shares: last quarter (2.47b) vs 12m ago -2.33% < -2% |
| Gross Margin: 75.91% > 18% (prev 75.73%; Δ 0.18% > 0.5%) |
| Asset Turnover: 53.81% > 50% (prev 55.60%; Δ -1.80% > 0%) |
| Interest Coverage Ratio: 11.89 > 6 (EBIT TTM 18.1b / Interest Expense TTM 1.52b) |
| A: 0.06 (Total Current Assets 35.0b - Total Current Liabilities 26.9b) / Total Assets 129b |
| B: 0.52 (Retained Earnings 66.7b / Total Assets 129b) |
| C: 0.15 (EBIT TTM 18.1b / Avg Total Assets 122b) |
| D: 0.55 (Book Value of Equity 45.9b / Total Liabilities 82.8b) |
| Altman-Z'' = 3.68 = AA |
| DSRI: 1.10 (Receivables 12.2b/10.8b, Revenue 65.6b/64.0b) |
| GMI: 1.00 (GM 75.73% / 75.91%) |
| AQI: 1.11 (AQ_t 0.53 / AQ_t-1 0.48) |
| SGI: 1.02 (Revenue 65.6b / 64.0b) |
| TATA: -0.07 (NI 8.94b - CFO 17.9b) / TA 129b) |
| Beneish M = -2.86 (Cap -4..+1) = A |
As of June 17, 2026, the stock is trading at USD 115.17 with a total of 10,664,496 shares traded.
Over the past week, the price has changed by -3.46%,
over one month by +13.08%,
over three months by +25.10% and
over the past year by +18.06%.
Merck has received a consensus analysts rating of 4.04. Therefore, it is recommended to buy MRK.
- StrongBuy: 12
- Buy: 3
- Hold: 11
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 129.7 | 12.7% |
P/E Trailing = 34.0169
P/E Forward = 23.5294
P/S = 4.535
P/B = 6.4112
P/EG = 5.5378
Revenue TTM = 65.6b USD
EBIT TTM = 18.1b USD
EBITDA TTM = 24.3b USD
Long Term Debt = 46.7b USD (from longTermDebt, last quarter)
Short Term Debt = 2.44b USD (from shortTermDebt, last quarter)
Debt = 49.1b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 43.4b USD (calculated: Debt 49.1b - CCE 5.70b)
Enterprise Value = 342b USD (298b + Debt 49.1b - CCE 5.70b)
Interest Coverage Ratio = 11.89 (Ebit TTM 18.1b / Interest Expense TTM 1.52b)
EV/FCF = 24.21x (Enterprise Value 342b / FCF TTM 14.1b)
FCF Yield = 4.13% (FCF TTM 14.1b / Enterprise Value 342b)
FCF Margin = 21.52% (FCF TTM 14.1b / Revenue TTM 65.6b)
Net Margin = 13.62% (Net Income TTM 8.94b / Revenue TTM 65.6b)
Gross Margin = 75.91% ((Revenue TTM 65.6b - Cost of Revenue TTM 15.8b) / Revenue TTM)
Gross Margin QoQ = 81.92% (prev 70.49%)
Tobins Q-Ratio = 2.66 (Enterprise Value 342b / Total Assets 129b)
Interest Expense / Debt = 3.10% (Interest Expense 1.52b / Debt 49.1b)
Taxrate = 23.18% (2.70b / 11.6b)
NOPAT = 13.9b (EBIT 18.1b * (1 - 23.18%))
Current Ratio = 1.30 (Total Current Assets 35.0b / Total Current Liabilities 26.9b)
Debt / Equity = 1.07 (Debt 49.1b / totalStockholderEquity, last quarter 45.9b)
Debt / EBITDA = 1.78 (Net Debt 43.4b / EBITDA 24.3b)
Debt / FCF = 3.08 (Net Debt 43.4b / FCF TTM 14.1b)
Total Stockholder Equity = 49.8b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.33% (Net Income 8.94b / Total Assets 129b)
RoE = 17.93% (Net Income TTM 8.94b / Total Stockholder Equity 49.8b)
RoCE = 18.75% (EBIT 18.1b / Capital Employed (Equity 49.8b + L.T.Debt 46.7b))
RoIC = 13.78% (NOPAT 13.9b / Invested Capital 101b)
WACC = 5.65% (E(298b)/V(347b) * Re(6.19%) + D(49.1b)/V(347b) * Rd(3.10%) * (1-Tc(0.23)))
Discount Rate = 6.19% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -85.40 | Cagr: -1.44%
[DCF] Terminal Value 73.10% ; FCFF base≈15.3b ; Y1≈13.4b ; Y5≈10.8b
[DCF] Fair Price = 52.80 (EV 174b - Net Debt 43.4b = Equity 130b / Shares 2.47b; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 71.01 | EPS CAGR: 59.79% | SUE: 0.86 | # QB: 1
Revenue Correlation: 95.10 | Revenue CAGR: 4.06% | SUE: 2.42 | # QB: 1
EPS current Quarter (2026-06-30): EPS=-0.15 | Chg30d=-107.37% | Revisions=-43% | Analysts=5
EPS next Quarter (2026-09-30): EPS=2.31 | Chg30d=-0.36% | Revisions=-14% | Analysts=5
EPS current Year (2026-12-31): EPS=2.74 | Chg30d=+0.00% | Revisions=-50% | GrowthEPS=-69.5% | GrowthRev=+2.8%
EPS next Year (2027-12-31): EPS=9.56 | Chg30d=+0.43% | Revisions=-20% | GrowthEPS=+249.5% | GrowthRev=+4.9%
[Analyst] Revisions Ratio: -50%